The labor supply curve is typically upward sloping because as the wage rate rises,
a. it will exceed the reservation wages of more individuals
b. the opportunity cost of leisure falls
c. the demand for the good produced by labor increases
d. the marginal revenue product of labor falls
e. the marginal revenue product of labor rises
A
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An economist observed that as more computers are added to a factory, the costs of production initially decline, reach a minimum, and then rise
In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis, the relationship always is A) negative and then linear after the minimum point. B) linear and then positive after the minimum point. C) negative and then positive after the minimum point. D) positive and then negative after the minimum point. E) negative both before and after the minimum point.
If housing prices are expected to increase, then, other things equal, the demand for houses will ________ and that of Treasury bills will ________
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
A decrease in autonomous planned investment spending, other things equal, shifts the ________ curve to the ________
A) IS; right B) IS; left C) LM; left D) LM; right
A textbook is a
a. private good and the knowledge that one gains from reading the book is a common resource. b. private good and the knowledge that one gains from reading the book is a public good. c. common resource and the knowledge that one gains from reading the book is a public good. d. common resource and the knowledge that one gains from reading the book is a private good.